The financial landscape for candidates has significantly changed over the last few years.
Recruiters are realizing that what used to be the only discussion point for salary is now just the opening line for more discussion around a candidate’s overall financial wellness and how a company can support their employees’ financial situations during the interview process.
People are becoming much more aware of the cost of living and are expecting companies not only to pay their employees fairly but also to support them in other ways, such as their overall financial wellness and total compensation literacy.
The New Math Candidates Are Doing
A few years ago, a strong salary was enough to get the job offer across the finish line.
Still, nowadays, more and more costs have crept into candidates’ calculations and their own “math” when comparing the associated costs of a new job and location.
This could include the cost of the new commute to work (and whether it will be by car, public transport, bike or on foot), the costs of a relocation, the costs of new childcare and the costs to which candidates will have to adjust as part of the general increase in the cost of living in the area to which they are relocating.
The way candidates view relocation packages has changed, and what was once considered attractive may now be seen as below par.
Relocation packages that only cover the cost of moving trucks and a signing bonus may not be enough to attract candidates in today’s market.
The resources that an employer can provide to assist with relocation costs can now be viewed as more attractive than additional cash.
Financial Wellness Isn't a Buzzword Anymore
It’s easy to dismiss something that has been bandied about by HR departments around the country.
But underlying all of that is the buzzword “financial wellness,” which is some very realistic goals and challenges that any employer can help their candidates and new hires face.
Financial wellness isn’t just about setting up new hires with a good compensation package and benefits.
It’s also about helping to guide them as they budget for a move to a new city, or as they search for a place to live, or deal with the challenges of increasing costs of daily living.
For instance, some employers hold financial wellness guidance sessions to help relocating employees create a budget for their move.
Others partner with financial wellness platforms to provide new hires with the means to compare auto insurance quotes online and get the best rate in their new city, for example.
This is a small but telling example of how an employer has thought about what an employee’s first 90 days on the job will actually be like, rather than just how they’ll be paid for the first 90 days.
By having financial wellness as a support mechanism, recruiters can gain an edge.
It is not necessary to list all the benefits in an offer package; instead, recruiters can clearly convey to candidates that this is how they can help them land on their feet within the first 3 months of joining a company.
Why This Changes the Recruiter's Pitch
If you are extending an offer, then your pitch to the candidate needs to change.
People are no longer just comparing salary and benefit numbers; they are comparing how you can support them in the transition to their new role.
Most companies describe the benefits of a job in the last paragraph of the offer letter, after listing out all of the other great things about the role.
Recruiters who flip this around and start with the benefits of the job will build offers that candidates will remember.
This is an opportunity for companies and recruiters alike.
A lot of companies currently list all the benefits of a job, but put salary and title first and list the benefits afterward.
By flipping this around, listing the benefits first, you can list all of how you can make your new hire’s transition to your company the easiest and most comfortable, and then list the salary and title afterward.
You will build a lot of respect and positive impressions with potential new hires if you can make their transition as easy as possible.
This will, in turn, help you retain your employees longer, because if employees feel that you have helped them transition to your company successfully, they are less likely to leave in the future.
They will also be less likely to feel resentment and anger in the future if they feel that you have helped to ease their transition to your company.
Secondly, this is a great way to retain employees.
Most employees don’t leave their jobs because they love their work.
They leave because of financial reasons.
They feel like they were sold a bill of goods and that the reality of the job and the cost of living in the new city to which they relocated was greater than they had anticipated.
And they resent the employer for not having been up front with them.
So, by helping employees through this relocation process, you can create very positive first impressions and avoid a lot of financially induced turnover.
Practical Ways to Bring This Into Your Process
You don’t have to create a massive new budget to begin to support candidates’ financial wellness in new ways. Here are a few places to start.
Write a list of a half-dozen to a dozen resources that a new hire relocating to a new city might find useful to get them settled into their new home.
(Housing costs, a list of the major insurance options available in the new city, basic information on the cost of living in the new city, that kind of thing.)
Train your recruiters to speak to financial wellness support during the offer process.
Candidates can easily become lost in onboarding paperwork, so make sure they hear about the financial wellness support that you offer as soon as they receive an offer.
Find a benefits or financial wellness platform for your company that candidates can start using while they are still waiting for their start date.
Get ideas on financial stress points from exiting employees - use them to modify what you're offering in the next hire cycle.
The list of financial support you provide to candidates can be short.
Show them what help relocating employees have had in the past, and have recruiters specifically highlight that financial wellness support is offered during new-hire conversations.
Set up new hires with access to benefits and/or financial tools that they can begin to understand and make decisions before the start date.
Also, please gather as much information as possible from recently relocated employees who have left your company to identify any past financial “friction points” and implement changes for future relocation hires.
The Bottom Line
People are becoming more financially aware, and they expect the company recruiting them to have the same level of awareness.
Recruiters who can speak to financial awareness can fill roles faster.
No, a high salary will not guarantee an offer of employment.
Today’s candidates will calculate their own relocation math and make their decisions based on a whole host of factors in addition to their new salary.
A company’s best bet at attracting the right candidate for the job will be to focus on all of the attractive aspects of a relocation package, including financial wellness resources and benefits, and realize that an attractive offer is one that takes all of the candidate’s costs into account, not just their own salary and the company’s signing bonus.
